Oil and Gas

As a leading corporation, the group has a key role in accelerating national economic growth, high-qualified human resources development, international integration and overseas investment.

The majority of the world’s O&G production and reserves comes from National Oil Companies (NOCs) controlled by governments – often in emerging countries – instead of institutional investors. These governments depend on their NOCs to generate revenues that contribute to government budgets, fund essential government services and provide a substantial source of foreign currency reserves. Until countries diversify their economies (in some cases made possible by the energy transition) or feel pressure to follow others in declaring net-zero targets, it is unlikely that they will make decisions against monetizing their valuable O&G reserves.

• The transition from coal to renewables must be a priority if we are to achieve the emission reductions we need.
• Outside Europe and the US, however, coal still dominates energy production.
  Energy transition mechanisms could be a way to hasten the shift to renewables in the developing world. Here’s how they would work.
• As we enter 2021, a growing number of countries are announcing. This is a most welcome set of New Year’s resolutions.

At a fundamental level, a “just energy transition” is one that delivers across the equally important, but sometimes competing objectives of economic development and growth, energy security and access and environmental sustainability.

Renewable energy, especially wind and solar power, are one of the main solutions to provide affordable and clean access to energy, and can provide significant opportunities for economic progress. However, challenges remain around intermittency and decarbonization of “hard to abate” sectors, such as aviation, shipping and heavy industries. Furthermore, given the O&G industry’s current impact and strategic importance to economic growth, job creation and socioeconomic prosperity in many countries, investments in the sector are evaluated with this “just” definition of energy transition in mind.